Spain changes car tax system to benefit cleaner cars

In a system which is almost copied from the one existing in the UK, Spain has just passed in the parliament a new law that will change the immatriculation tax. This tax is currently at 12 percent of the value of a new car (if you wondered, you also have to add 16 percent VAT or Sales Tax). This tax on new vehicles will be changed from this single value into different percentages, depending to their CO2 emissions per km. Therefore, a clean car will pay 0 percent and dirtier vehicles (and the law includes quads and water bikes) will pay somewhat more than the existing 12 percent (to be determined).

This measure has been adapted because of the alarming rising level of CO2 emissions. Spaniards are switching to SUVs and premium models with less mpg, the Spanish Costas have also become overpopulated and there is a suburban sprawl not unlike the American one in the 50s. The Government is seriously concerned about the country's failure in accomplishing the Kyoto protocol.

The law will be effective December 1st, once it becomes approved by the Senate and further adapted by the Government.